A Putaway Rule outlines a strategy for assigning warehouses to incoming stock.

Each Putaway Rule is specifically defined for a combination of item and warehouse within a company, taking into account factors such as warehouse capacity and priority.

During Purchase Receipts and Stock Entries (for Material Receipt and Material Transfer), these Putaway Rules are implemented, automatically assigning items to warehouses according to the specified strategy.

This functionality is especially beneficial for managing capacity in large warehouses with multiple locations.

To access a Putaway Rule, go to:

> Home > Stock > Stock Transactions > Putaway Rule

1. Prerequisites

Before creating and using a Putaway Rule, it is advised that you create the following first:

• Warehouse

2. How to create a Putaway Rule

1. Navigate to the Putaway Rule list and initiate a new entry.
2. Specify the Company and choose the relevant Item.
3. Indicate the Warehouse to which this rule applies.
4. Define the Capacity, optionally selecting a different Unit of Measure (UOM) if needed. The Capacity in Stock UOM will be automatically determined.
5. Assign a Priority, starting from 1 for the highest priority.
6. Save the entry.
7. Optionally, you can disable a Putaway Rule.

Each rule is distinct for every Item-Warehouse combination.

3. How Putaway is strategized

1. In this strategy, the assignment is determined solely by Capacity and Priority factors.
2. Warehouses will be automatically assigned until they reach their maximum capacity.
3. Priority takes precedence, followed by available free space. If two rules share the same priority, the one with more available free space will be prioritized for assignment.
4. If all warehouses are at full capacity with no available space, BizCentric will notify you accordingly.

4. How it works

As previously mentioned, Putaway Rules are implemented in Purchase Receipts and Stock Entries (Material Receipt & Material Transfer).

A checkbox labeled “Apply Putaway Rule” directs the allocation of items to Warehouses according to the defined Putaway Rules.

Upon checking this checkbox, the Putaway Rules come into effect and are reapplied upon saving if the checkbox remains enabled.

Let’s observe this process in action:

• Consider a Purchase Order requiring 5 Cartons (60 Nos) of Mineral Water.
• Below are two active Putaway Rules, each with a capacity of 4 Cartons (48 Nos). One rule has a higher priority than the other.
• Upon creating a Purchase Receipt from this Purchase Order, checking the “Apply Putaway Rule” checkbox triggers the allocation process according to the rules.
• Initially, 4 out of the 5 Cartons are allocated to the ‘Finished Goods – UPI’ Warehouse. Once this Warehouse reaches capacity, the remaining 1 Carton is assigned to the ‘Stores – UPI’ Warehouse.

5. Warehouse Capacity Summary

The Warehouse Capacity Summary Report displays the capacities of warehouses along with their current stock levels.

Only warehouses with Putaway Rules will be included in this report. The “Edit Capacity” button allows for adjustments to the capacity specified in the Putaway Rule.

6. Types of Putaway Application

6.1. Direct Putaway

1. The example in the previous section explains Direct Putaway.
2. It is, essentially, directly assigning incoming stock to certain Warehouses based on a strategy.
3. This can easily be exercised via a Purchase Receipt.

6.2. Indirect (Combined) Putaway

1. Stock is often received into temporary or staging Warehouses first.
2. From here it is placed into appropriate locations within the Warehouse.
3. This is called Indirect or Combined Putaway.
4. To simulate this within BizCentric, a simple Purchase Receipt can be created into the temporary Warehouse, without Putaway applied.
5. From here, a Stock Entry (Material Transfer) can be done, where Putaway Rules can be applied similar to Purchase Receipts.

7. Related Topics

1. Purchase Receipt
2. Stock Entry